Beer Marketing Case

1. Have you ever tried one of the Boston Beer brews? If so, how did you like the taste? Was it worth the higher price?

I’m not a beer drinker but when I have to select from traditional set of beers (in a gas station), I go for Samuel Adams Irish red, latitude 48, cherry wheat or lager because it just tastes better.

2. The investment community evidently thought Boston Beer had great growth potential to have bid up the initial price so quickly. Why do you suppose so many fell into this trap? Or was Jim Koch a poor executive in not bringing Boston Beer up to their expectations?

I think that his controlled growth has kept his potential of being a “deluxe” beer even though is local. I think that it has grown a lot, and expecting abnormal growth from a traditional well recognize market (beer drinkers niche being satisfied with a non standard beer at a higher price) was an over expectation.

3. “The myriad specialty beers are but a fad. People will quickly tire of an expensive, strong- flavored beer. Much of it is just a gimmick.” Discuss.

I think the beer drinkers got divided years ago when specialty beers arrived. Several left the traditional brands to embrace the imports and from that group several went into the “well crafted” beers. I personally have seen the increase of beer nerd/snobs, similar to the wine and cigar snobs, and the same as in these niches, quality must support a higher price, even if the cost is the same as the regular options. In the other hand there are people that just prefer the traditional taste, because they are not interested in the taste, texture, quality, etc., but in the alcohol effect; which will be the same case as in eating a $25 pizza pie in a high end Italian restaurant with arugula and prosciutto instead of a $5 pie with pepperoni in a gas station.

4. What problems do you see retailers facing with the burgeoning number of different beers today? What might be the implications of this?

Retailers are looking for...